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AI vs Copyright: Did a US Official Get Fired for Taking a Stand?

Posted on 12/05/202512/05/2025 by IFlux

Core viewpoint: The AI landscape is rapidly evolving, marked by both innovation and challenges in copyright, business strategy, and ethical considerations.

AI and Copyright

The intersection of AI and copyright law is under intense scrutiny.

Shira Perlmutter, the Register of Copyrights, was reportedly fired after the US Copyright Office released a pre-publication opinion on the fair use status of AI training data. The report suggests that commercial use of copyrighted material to train AI models may exceed fair use boundaries, especially when competing with existing markets. This event sparked controversy, with Representative Joe Morelle criticizing the firing as a power grab linked to Perlmutter’s stance against using copyrighted works for AI training. The U.S. Copyright Office released a report exploring copyright laws and AI, addressing whether the copyrighted content AI companies use to train their AI models qualifies under the fair use doctrine.

AI Business and Investment

Companies are adjusting their AI strategies and investments in response to market dynamics and technological limitations.

OpenAI and Microsoft are reportedly in negotiations to rewrite the terms of their multi-billion dollar partnership, with OpenAI considering an IPO and Microsoft aiming to protect its access to AI models. SoftBank’s plans to invest $100 billion in AI infrastructure in the US have slowed down due to economic risks. Klarna, after initially reducing its human workforce in favor of AI-powered chatbots, is now hiring more human agents due to the limitations of AI in customer service. Salesforce research indicates that 83% of decision-makers plan to increase investments in AI in the coming year, with services organizations reporting cost and time savings from AI investments.

AI Technology and Innovation

New AI models and tools are emerging, with a focus on efficiency, scalability, and specific applications.

NVIDIA and MIT researchers have introduced Audio-SDS, an SDS extension for text-conditional audio diffusion models, enabling various audio tasks without specialized datasets. The AI industry is seeing a shift from Transformers to State Space Models (SSMs) like Mamba, especially for applications requiring speed and efficiency. Google’s Gemma collection of AI models has surpassed 150 million downloads, with developers creating over 70,000 variants on Hugging Face. Windsurf (formerly Codeium) introduced pricing updates including free access to OpenAI’s o4-mini and GPT-4.1 for a limited time.

Windsurf

AI Ethics and Governance

Concerns about AI ethics, privacy, and transparency are prompting calls for guidelines and regulations.

More than 100 scientists in Singapore have proposed guidelines for researchers on making AI more trustworthy, reliable, and secure, at a time when major AI developers are reducing disclosures about their models. Police and federal agencies are using a new AI tool called Track, developed by Veritone, to identify individuals by attributes, raising privacy concerns similar to those associated with facial recognition.

AI Integration and Applications

AI is being increasingly integrated into various platforms and applications, impacting user experiences and workflows.

SoundCloud faced backlash for a quietly added clause in its Terms of Use stating that user content may be used to train AI, clarifying later that it has never used artist content to train AI models. Microsoft is adding more ways to use Copilot in Windows 11, including shortcuts and AI-driven recommendations in the Microsoft Store. A lifetime subscription to AIMagicX is on sale, offering an AI generator and editor for creating text, visuals, and designs.

AIMagicX

International AI Developments

Countries are making strategic investments in AI to bolster their technological capabilities.

Saudi Arabia has launched a new firm to invest across the artificial intelligence value chain.


Refer Link:

  1. AI Essentials: 27 Ways to Make Gen AI Work for You, According to Our Experts
  2. Trump fires head of Copyright Office two days following report that AI training may not be fair use
  3. Get lifetime access to your own personal AI robot for only A$40
  4. SoundCloud says it’s never trained AI using artists’ work, after getting called out for terms of use change
  5. Trump fires Copyright Office director after report raises questions about AI training
  6. OpenAI Enters ‘Tough Negotiation’ With Microsoft, Hopes to Raise Money With IPO
  7. Klarna Hiring Back Human Help After Going All-In on AI
  8. NVIDIA AI Introduces Audio-SDS: A Unified Diffusion-Based Framework for Prompt-Guided Audio Synthesis and Source Separation without Specialized Datasets
  9. US Copyright Office to AI Companies: Fair Use Isn’t ‘Commercial Use of Vast Troves of Copyrighted Works’
  10. OpenAI正与微软重议合约,为IPO“铺路”
  11. How a new type of AI is helping police skirt facial recognition bans
  12. SoftBank Stargate Venture With OpenAI Hits Snags on Tariff Fears
  13. The AI Industry’s Obsession With Transformers Might Finally Be Waning
  14. Windsurf Shakes Up AI Coding Tool Market With Generous Free Tier and GPT-4.1 Access
  15. Windows 11 gets more AI upgrades we didn’t ask for – as Copilot pops up on the desktop and Microsoft Store
  16. The death of spreadsheets: 6 reasons why AI will soon be the dominant business reporting tool
  17. 100 leading AI scientists map route to more ‘trustworthy, reliable, secure’ AI
  18. Google’s Gemma AI models surpass 150M downloads
  19. Saudi Arabia Launches New AI Firm Ahead of Trump’s Visit
  20. OpenAI and Microsoft in talks to revise terms and renew partnership, FT reports

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